Abstract : We study a model of technology adoption where we assume that new (and more efficient) technologies are available according to a Poisson Process. However, unlike what is usually assumed, this process is not completely exogenous to the firm, since the firm can invest in an R&D center, which increases the intensity of the invention rate.

In this paper we assume that the firm can invest, at most, twice in this R&D center. The goal is to determine the optimal policy concerning the investment in the R&D center, assuming specific costs. We also present numerical results that show how the firm should proceed in various situations. Note: work in progress, jointly with V. Hagspiel, K. Huismanand P. Jesus